Q&A: Banking & Finance

I opened a PPF account in 1990 and continued with it for 15 years, till March 31, 2006. The account has remained idle since then, with only annual interest being credited to it at the close of each financial year. Now, having realised that I have a taxable income even after my retirement, I wish to revive the account by making deposits and claim the benefits under Section 80C. What should I do to revive my account?

Namendra Prasad

Rules regarding PPF accounts say that if a subscriber intends to continue the account after maturity for a further block of 5 years he may exercise the option on the expiry of 15 years, but before the expiry of one year from the date of maturity. However, there is no bar on opening a new account.

Minimum Balance

I have a savings account with Dena Bank for avery long time. On 26.12.11 the bank debited Rs111 as charges for non-maintenance of the minimum balance. From October 10, 2011, my balance, as per the passbook issued, is Rs1,781.55. On 09.09.11, the passbook entry clearly states that minimum balance with cheque facilities is Rs1,000 for metro centres. We wanted to register a protest with the bank, but official refused to accept the letter. Please advise.

Madhu Parasramka

As per bank's deposit policy 2012-13, the bank has specified that savings bank account holders with cheque book facility need to maintain a quarterly average balance in metro/ urban/semi urban branches.

If the said minimum balance is not maintained then the bank will levy a charge of Rs100 per quarter, plus service tax. While you may have maintained a balance of more than Rs1,000 on a specific day but what is needed is maintaining the required balance on quarterly average balance basis.

Since the bank has not replied for more than 30 days you can file a complaint with the banking ombudsman provided you have a case as clarified here.